Citi resumed coverage of Lucid Motors‘ shares on Monday with a neutral rating and $2.90 price target. The firm emphasises Lucid’s “strong” electric vehicle (EV) technology although it raises concern on the execution risk for the upcoming model planned for late 2024 Gravity.
In a recent research note, the firm assesses the risk-reward balance regarding Lucid’s “strong” EV technology stance and “adequate” near-term liquidity.
This evaluation takes into account previous demand and branding obstacles, as well as the company’s dependency on the successful rollout of its inaugural SUV model, the Lucid Gravity, later this year.
Citi added that feels away encouraged by upcoming model and sees good prospects for success. Still, a fair amount of execution risk exists to launch Gravity on time, it adds.
Last week, Lucid Motors signed a partnership with the electric vehicle (EV) charging company Wallbox to provide chargers to its European customers.
The company reported recently the delivery of 1,967 vehicles in the first quarter of the year while producing 1,728 units. In late February, Lucid provided a production guidance of “approximately 9,000” vehicles, up from the 8,428 units in 2023.
Lucid will host its conference call to discuss the first quarter financial results on May 6 at 5:30 pm Eastern time immediately after releasing its financial results.